This project might have had better growth opportunities if it used a flexible e-commerce/subscription system, not only Apple's paywalled garden.
The iPhone's OS has only penetrated 5% of the market in the US, as opposed to all web-enabled devices, which account for more that 40%.
Mygazines, for example, is a flexible digital publishing software provider (http://www.mygazines.com/). They enable publishers to enhance, display and sell their content across multiples devices. The digital editions look and operate like apps but work on any browser (HTML5). They can even be wrapped and sold on the app stores. It's a universal publishing platform.
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